GuruFocus Premium Membership

Serving Intelligent Investors since 2004. Only 96 cents a day.

Free Trial

Free 7-day Trial
All Articles and Columns »

Universal Corporation Announces 14% Increase in Third Quarter Earnings per Share

February 05, 2009 | About:
insider

Press Release: Universal Corporation Announces 14% Increase in Third Quarter Earnings per Share

RICHMOND, Va., Feb. 5 /PRNewswire-FirstCall/ -- FISCAL YEAR 2009 THIRD QUARTER HIGHLIGHTS
  • Diluted earnings per share up 14% to $1.78 compared to $1.56 last year.
  • Revenues up 22% to $699 million on higher volumes from larger crops and higher green tobacco costs.
  • Operating income down $2 million to $77 million due to currency remeasurement losses as the U.S. dollar strengthened.
FISCAL YEAR 2009 NINE-MONTH HIGHLIGHTS
  • Diluted earnings per share up 12%, to $3.78 per share versus $3.37 per share last year.
  • Revenues up 19% to $2.0 billion.
  • Operating income up slightly to $187 million.
George C. Freeman, III, Chairman, President, and Chief Executive Officer of Universal Corporation (UVV), reported a 14% increase in earnings per diluted share to $1.78 for the Company's third fiscal quarter, which ended on December 31, 2008. These results represented net income of $53.1 million compared to $50.8 million, or $1.56 per diluted share, last year. The quarter reflected very strong operations in all of the Company's reported segments, especially in flue-cured and burley operations where shipments of larger African crops and good performance by the North American group had a significant effect. The performance of those operations was offset by the negative effects of currency remeasurement related to Brazilian net monetary assets that reduced operating income by $20 million. Revenues increased by 22% to $699 million, primarily due to increased costs of green tobacco that were passed through in sales prices, as well as to increased volumes after the very small African crops last year. Similar factors affected the nine-month results. In addition, the Company benefited from lower effective tax rates. Net income for the first three quarters of the fiscal year was $116.0 million, or $3.78 per diluted share, up from $109.3 million, or $3.37 per diluted share, reported last year. Revenues increased by 19% during the nine-month period.Mr. Freeman stated, "We are pleased with our operations so far this year. It was gratifying to see the recovery of our African operations. African results improved due to higher volumes as well as efficiencies and strong teamwork. But the continued devaluation of the Brazilian currency has again adversely affected our results because of our balance sheet exposure there. Part of that exposure is related to farmer receivables that will be collected upon delivery of the current crop, and it reflects the higher cost of the local currency when fertilizer and seeds were provided to the farmers. The agricultural materials were purchased in the spring in the midst of the overheated commodity markets and when the local Brazilian currency was 30 - 40% stronger than it is today. The regions have delivered operating improvements as a result of hard work and careful attention to costs."Tobacco competes with commodity crops for acreage, and world markets for commodity products have changed a great deal during the fiscal year. Early in the year, the cost of green tobacco escalated as all areas worked to ensure sustainability of supply in the face of competing crops. The market situation for fiscal year 2010 is likely to be very different. We saw a much needed recovery in burley volumes in Africa this year, but signs are pointing to an extremely large burley crop there next year, which is likely to move worldwide markets to oversupply. Flue-cured tobacco markets are expected to remain mostly balanced. We continue to work to maintain future production of the type of quality tobacco that our customers require."Notwithstanding the 12% increase in earnings per share this year, we have not been immune to the effects of the financial chaos in world markets. Remeasurement losses related to the rapid and severe weakening of the local Brazilian currency reduced our earnings per share by $0.91. The value of our pension assets was also reduced by the general market decline, and we expect to provide between $10 million and $20 million in additional funding to our qualified defined benefit plan. But our business is healthy, and our balance sheet is strong. We have prudently managed the cash inflow from the sale of our non-tobacco businesses two years ago. We continue to work on cost control measures. We have passed the peak working capital requirement period during the year, and we believe that our financial resources are adequate to meet our needs."FLUE-CURED AND BURLEY OPERATIONS:The flue-cured and burley operations posted a very strong quarter as operating income increased by 3%, to about $73.6 million, and revenues increased by 27%. North America's revenues and operating income were above last year's numbers primarily because of increased sales of current crop tobacco in the United States, partly due to earlier shipments this year. Results in North America also benefited from increased trading activities. Operating income for the Other Regions segment decreased slightly for the quarter despite improved operations in Africa and volume increases from larger burley crops there. The segment's performance was hurt by lower results from the Company's South American operations due to currency remeasurement losses in Brazil, where the local currency weakened by approximately 22% during the quarter. Some of the remeasurement losses were attributable to advances to farmers for crop inputs for the upcoming growing season. Crop inputs were more expensive this year due to increased fertilizer prices and the weaker U.S. dollar at the time they were purchased. Although the crop inputs are being used for production of the crop that will be sold next year, the advances to farmers for those inputs are remeasured in U.S. dollars along with all other monetary assets and liabilities each reporting period. As a result, the related remeasurement loss affects operating income this year when the prior crop is being sold. Shipments this quarter from South America were higher than in the prior year, but they continued to be hampered by a flood-related port closure. Results from Europe were lower in the quarter because significant shipments took place earlier in the year, and Asian operations saw lower earnings on lower volumes and a negative comparison from currency changes this year. Revenues for Other Regions increased by 29%, to $483 million, due to volume and price increases. Price increases were primarily related to higher cost leaf.For the nine months, results for flue-cured and burley operations increased by more than 5%, to nearly $175 million. The improvement was due to stronger performance in North America where cost savings in Canada and increased volumes in the United States boosted income and revenues. The Other Regions segment reflected stronger performance in the African region from higher volumes and from reduced charges and write downs there. Results of European operations were higher as well, primarily related to higher volumes in the region's tobacco sheet business. South American results were reduced by the effect of the previously mentioned remeasurement losses, which totaled $43 million for the period. The Brazilian currency devalued by about 32% over the nine months, compared to a 15% strengthening last year. Asian results were reduced by their third quarter performance. Revenues for the Other Regions segment were up by 25% to $1.6 billion for the nine months, primarily due to volume increases in Africa and higher prices in several regions related to higher leaf costs.OTHER TOBACCO OPERATIONSResults for Other Tobacco Operations declined as earnings from the Special Services group, where sales were accelerated last year, showed an expected decrease related to a shift of business to the origins. That change also caused the 16% decline in segment revenue in the quarter. In addition, results from the oriental tobacco joint venture declined, primarily due to the sale of lower margin styles and grades this year and to currency remeasurement losses. Earnings of the dark tobacco operations were comparable to last year. For the nine months, segment earnings were 15% lower than the same period last year. The shift in business from Special Services caused the decline, but that effect was partially offset by improved performance in dark tobacco operations and the oriental tobacco joint venture. The latter group saw higher volumes for the nine-month period, the effect of which was partly offset by lower margins and lower currency remeasurement gains this year.OTHER INFORMATIONSelling, general and administrative expenses, which are included in segment operating results, increased by about $41 million in the quarter and $72 million for the nine months, primarily due to the large currency remeasurement and exchange losses this year. Last year, when the U.S. dollar was weakening against most other world currencies, the Company generated currency-related gains. In contrast, fiscal year 2009 has seen the U.S. dollar dramatically strengthen against most currencies since the first fiscal quarter, producing the opposite effect. Thus, year-to-year comparisons reflect net expense increases of approximately $35 million for the quarter and $68 million for the nine months due to currency effects. Currency fluctuations primarily impacted our operating results in Brazil, the Philippines, Indonesia, and Africa and were mostly caused by local currency receivables from suppliers. The Company has hedged some of its net monetary assets with local borrowings.Net interest expense increased by $5.4 million in the quarter compared to last year, primarily because of increased cash requirements to fund working capital needs and share repurchases. The Company made substantial progress on its share repurchase program, spending about $110 million to purchase 2.23 million shares during the nine months, bringing program totals, since November 2007, to $128 million and 2.55 million shares. The effective tax rate fell to 26% for the quarter and 30% for the nine months. Those rates were lower than last year's rate of about 36% for both periods, primarily because management expects to utilize more of the Company's foreign tax credit carryforwards, which caused the reduction of a valuation allowance for those credits. During the current year quarter, management also reversed a liability for uncertain tax positions because the statute of limitations for the related tax year expired. For the full year, we expect our effective tax rate to be approximately 31%.Additional informationThis information includes "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The Company cautions readers that any statements contained herein regarding earnings and expectations for its performance are forward-looking statements based upon management's current knowledge and assumptions about future events, including anticipated levels of demand for and supply of its products and services; costs incurred in providing these products and services; timing of shipments to customers; changes in market structure; and general economic, political, market, and weather conditions. Actual results, therefore, could vary from those expected. A further list and description of these risks, uncertainties and other factors can be found in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2008 and in other documents the Company files with the Securities and Exchange Commission. This information should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, 2008.At 5:00 p.m. (Eastern Time) on February 5, 2009, the Company will host a conference call to discuss these results. Those wishing to listen to the call may do so by visiting www.universalcorp.com at that time. A replay of the webcast will be available at that site for three months. A taped replay of the call will also be available until February 26, 2009, by dialing (800) 642-1687. The confirmation number to access the replay is 84039948.Headquartered in Richmond, Virginia, Universal Corporation is one of the world's leading tobacco merchants and processors and conducts business in more than 35 countries. Its revenues from continuing operations for the fiscal year ended March 31, 2008, were $2.1 billion. For more information on Universal Corporation, visit its web site at www.universalcorp.com.

UNIVERSAL CORPORATION AND SUBSIDIARIES    CONSOLIDATED STATEMENTS OF INCOME    (In thousands of dollars, except per share data)                                  Three Months Ended     Nine Months Ended                                      December 31,          December 31,                                   2008      2007       2008         2007                                       (Unaudited)            (Unaudited)    Sales and other operating     Revenues                    $699,144  $573,094  $1,991,021  $1,678,641    Costs and expenses      Cost of goods sold          533,176   446,089   1,566,876   1,324,752      Selling, general and       administrative expenses     88,556    47,869     237,351     165,545      Restructuring costs               -         -           -       3,304    Operating income               77,412    79,136     186,794     185,040      Equity in pretax earnings       of unconsolidated       affiliates                   5,259     8,477       12,792      7,231      Interest income                 195     4,453        1,562     13,317      Interest expense             11,435    10,314       29,214     32,274    Income before income taxes     and other items               71,431    81,752      171,934    173,314      Income taxes                 18,638    29,204       52,034     62,937      Minority interests, net       of income taxes               (291)    1,796        3,923        974    Income from continuing     Operations                    53,084    50,752      115,977    109,403    Loss from discontinued     operations, net of income     taxes                              -         -            -       (145)    Net income                     53,084    50,752      115,977    109,258    Dividends on convertible     perpetual preferred stock     (3,712)   (3,712)     (11,137)   (11,137)    Earnings available to common     shareholders                 $49,372   $47,040     $104,840    $98,121    Basic earnings per common     share:      From continuing operations    $1.98     $1.72        $4.07      $3.60      From discontinued operations      -         -            -      (0.01)        Net income                  $1.98     $1.72        $4.07      $3.59    Diluted earnings per common     share:      From continuing operations    $1.78     $1.56        $3.78      $3.38      From discontinued operations      -         -            -      (0.01)        Net income                  $1.78     $1.56        $3.78      $3.37    See accompanying notes.


UNIVERSAL CORPORATION AND SUBSIDIARIES    CONSOLIDATED BALANCE SHEETS    (In thousands of dollars)                                        December 31,  December 31,  March 31,                                            2008          2007        2008                                         (Unaudited)   (Unaudited)                             ASSETS    Current      Cash and cash equivalents            $87,971      $502,277     $186,070      Short-term investments                 5,939             -       58,889      Accounts receivable, net             342,595       233,861      231,107      Advances to suppliers, net           153,806       114,897      149,376      Accounts receivable -       unconsolidated affiliates            35,234        46,732       43,718      Inventories - at lower of cost       or market:        Tobacco                            613,597       486,785      602,945        Other                               67,000        42,289       42,562      Prepaid income taxes                  20,270         8,032       17,696      Deferred income taxes                 36,799        19,158       22,737        Other current assets                65,630        58,264       61,960          Total current assets           1,428,841     1,512,295    1,417,060    Property, plant and equipment      Land                                  15,978        17,061       16,460      Buildings                            252,846       250,202      254,737      Machinery and equipment              503,993       515,870      519,695                                           772,817       783,133      790,892          Less accumulated depreciation   (453,288)     (442,844)    (456,059)                                           319,529       340,289      334,833    Other assets      Goodwill and other intangibles       106,137       104,689      106,647      Investments in unconsolidated       affiliates                          110,166       114,622      116,185      Deferred income taxes                 35,562        66,991       49,632      Other noncurrent assets               97,020       183,948      109,755                                           348,885       470,250      382,219          Total assets                  $2,097,255    $2,322,834   $2,134,112    See accompanying notes.


UNIVERSAL CORPORATION AND SUBSIDIARIES    CONSOLIDATED BALANCE SHEETS    (In thousands of dollars)                                        December 31,  December 30,  March 31,                                            2008          2007        2008                                         (Unaudited)  (Unaudited)      LIABILITIES AND SHAREHOLDERS' EQUITY    Current      Notes payable and overdrafts        $140,677      $139,632     $126,229      Accounts payable and accrued       Expenses                            201,961       173,864      210,354      Accounts payable -       unconsolidated affiliates            28,880         8,815       10,343      Customer advances and deposits        27,344        86,099       21,030      Accrued compensation                  16,646        15,007       25,484      Income taxes payable                  10,087        12,712        8,886      Current portion of long-term       Obligations                          79,500       150,000            -          Total current liabilities        505,095       586,129      402,326    Long-term obligations                  333,943       400,644      402,942    Pensions and other postretirement     Benefits                               86,609         98,242      88,278    Other long-term liabilities             66,796         73,322      84,958    Deferred income taxes                   54,156         47,881      36,795          Total liabilities              1,046,599      1,206,218   1,015,299    Minority interests                       6,861          6,985       3,182    Shareholders' equity      Preferred stock:        Series A Junior Participating         Preferred Stock, no par value,         500,000 shares authorized, none         issued or outstanding                   -              -           -        Series B 6.75% Convertible         Perpetual Preferred Stock,         no par value, 5,000,000 shares         authorized, 219,999 shares         issued and outstanding (219,999         at December 31, 2007, and         March 31, 2008)                   213,023         213,023    213,023      Common stock, no par value,       100,000,000 shares authorized,       24,987,055 shares issued and       outstanding (27,299,524 at       December 31, 2007, and       27,162,150 at March 31, 2008)       193,020         198,581    206,436      Retained earnings                    688,015         729,548    711,655      Accumulated other comprehensive       Loss                                (50,263)        (31,521)   (15,483)          Total shareholders' equity     1,043,795       1,109,631  1,115,631          Total liabilities and           shareholders' equity         $2,097,255      $2,322,834 $2,134,112    See accompanying notes.


UNIVERSAL CORPORATION AND SUBSIDIARIES    CONSOLIDATED STATEMENTS OF CASH FLOWS    (In thousands of dollars)                                                          Nine Months Ended                                                             December 31,                                                          2008         2007                                                             (Unaudited)    CASH FLOWS FROM OPERATING ACTIVITIES OF     CONTINUING OPERATIONS:      Net income                                       $115,977     $109,258      Adjustments to reconcile net income to       net cash provided (used) by operating       activities of continuing operations:        Net loss from discontinued operations                 -          145        Depreciation                                     31,651       31,028        Amortization                                        736        1,597        Provisions for losses on advances and         guaranteed loans to suppliers                   14,427       12,218        Remeasurement loss (gain), net                   42,432      (13,187)        Restructuring costs                                   -        3,304        Other, net                                       31,248       29,677        Changes in operating assets and         liabilities, net                              (243,274)      28,988          Net cash provided (used) by operating           activities of continuing operations           (6,803)     203,028    CASH FLOWS FROM INVESTING ACTIVITIES OF     CONTINUING OPERATIONS:      Purchase of property, plant and equipment         (28,900)     (18,355)      Purchases of short-term investments                (9,658)           -      Maturities and sales of short-term investments     62,833            -      Proceeds from sale of business, less cash of       business sold                                          -       26,556      Proceeds from sale of property, plant and       equipment, and other                              14,530       15,964      Deposit to escrow account                               -      (32,098)        Net cash provided (used) by investing         activities of continuing operations             38,805       (7,933)    CASH FLOWS FROM FINANCING ACTIVITIES OF     CONTINUING OPERATIONS:      Issuance (repayment) of short-term debt, net       28,288       (2,559)      Repayment of long-term debt......                       -      (14,000)      Issuance of common stock                               37       16,131      Repurchase of common stock                       (111,073)      (4,084)      Dividends paid on convertible perpetual       preferred stock                                  (11,137)     (11,137)      Dividends paid on common stock                    (34,623)     (36,422)      Other                                                (104)        (907)        Net cash used by financing activities of         continuing operations                         (128,612)     (52,978)        Net cash provided (used) by continuing         operations                                     (96,610)     142,117    CASH FLOWS FROM DISCONTINUED OPERATIONS:       Net cash provided by operating activities of        discontinued operations                               -        6,495       Net cash used by investing activities of        discontinued operations                               -          (17)       Net cash used by financing activities of        discontinued operations                               -       (4,957)       Net cash provided by discontinued operations           -        1,521    Effect of exchange rate changes on cash              (1,489)         164    Net increase (decrease) in cash and cash     equivalents                                        (98,099)     143,802    Cash and cash equivalents of continuing     operations at beginning of year                    186,070      358,236    Cash and cash equivalents of discontinued     operations at beginning of year                          -          239    Less:  Cash and cash equivalents of discontinued     operations at end of period                              -            -    Cash and cash equivalents at end of period          $87,971     $502,277    See accompanying notes.
NOTE 1. BASIS OF PRESENTATION Universal Corporation, with its subsidiaries ("Universal" or the "Company"), is one of the world's leading leaf tobacco merchants and processors. The Company previously had non-tobacco operations, but sold most of them in fiscal year 2007. The remaining non-tobacco businesses, or the assets of those businesses, were sold during fiscal year 2008. Those operations are reported as discontinued operations for all periods in the Company's financial statements. Because of the seasonal nature of the Company's business, the results of operations for any fiscal quarter will not necessarily be indicative of results to be expected for other quarters or a full fiscal year. All adjustments necessary to state fairly the results for the period have been included and were of a normal recurring nature. Certain amounts in prior year statements have been reclassified to conform to the current year presentation. This document should be read in conjunction with the financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2008. NOTE 2. GUARANTEES AND OTHER CONTINGENT LIABILITIESGuarantees of bank loans to growers for crop financing and construction of curing barns or other tobacco producing assets are industry practice in Brazil and support the farmers' production of tobacco there. At December 31, 2008, the Company's total exposure under guarantees issued by its operating subsidiary in Brazil for banking facilities of farmers in that country was approximately $133 million. About 70% of these guarantees expire within one year, and all of the remainder expire within five years. The subsidiary withholds payments due to the farmers on delivery of tobacco and forwards those payments to the third-party banks. Failure of farmers to deliver sufficient quantities of tobacco to the subsidiary to cover their obligations to third-party banks could result in a liability for the subsidiary under the related guarantee; however, in that case, the subsidiary would have recourse against the farmers. The maximum potential amount of future payments that the Company's subsidiary could be required to make is the face amount including unpaid accrued interest, or $133 million ($205 million as of December 31, 2007, and $218 million at March 31, 2008). The accrual recorded for the fair value of the guarantees was approximately $10 million and $11 million at December 31, 2008 and 2007, respectively, and approximately $13 million at March 31, 2008. In addition to these guarantees, the Company has other contingent liabilities totaling approximately $56 million, primarily related to a bank guarantee that bonds an appeal of a 2006 fine in the European Union. Various subsidiaries of the Company are involved in other litigation and tax examinations incidental to their business activities. While the outcome of these matters cannot be predicted with certainty, management is vigorously defending the claims and does not currently expect that any of them will have a material adverse effect on the Company's financial position. However, should one or more of these matters be resolved in a manner adverse to management's current expectations, the effect on the Company's results of operations for a particular fiscal reporting period could be material.NOTE 3. EARNINGS PER SHAREThe following table sets forth the computation of earnings per share for the periods presented in the consolidated statements of income.

Three Months Ended   Nine Months Ended                                             December 31,       December 31,    (in thousands, except per     share data)                           2008      2007      2008      2007    Basic Earnings Per Share    Numerator for basic earnings per     share      From continuing operations:      Income from continuing operations   $53,084  $50,752  $115,977 $109,403      Less:  Dividends on convertible       perpetual preferred stock           (3,712)  (3,712)  (11,137) (11,137)        Earnings available to common         shareholders from continuing         operations                        49,372   47,040   104,840   98,266      From discontinued operations:        Earnings (loss) available to         common shareholders from         discontinued operations                -        -         -     (145)      Net income available to common       shareholders                       $49,372  $47,040  $104,840  $98,121    Denominator for basic earnings      per share      Weighted average shares       outstanding                         24,989   27,357    25,759   27,285    Basic earnings per share:      From continuing operations            $1.98    $1.72     $4.07    $3.60      From discontinued operations              -        -         -    (0.01)      Net income per share                  $1.98    $1.72     $4.07    $3.59    Diluted Earnings Per Share    Numerator for diluted earnings     per share      From continuing operations:      Earnings available to common       shareholders from continuing       operations                         $49,372  $47,040  $104,840  $98,266      Add:  Dividends on convertible       perpetual preferred stock       (if conversion assumed)              3,712    3,712    11,137   11,137      Earnings available to common       shareholders from continuing       operations for calculation of       diluted earnings per share          53,084   50,752   115,977  109,403      From discontinued operations:        Earnings (loss) available to         common shareholders from         discontinued operations                -        -         -     (145)      Net income available to common       shareholders                       $53,084  $50,752  $115,977 $109,258    Denominator for diluted earnings     per share:      Weighted average shares       outstanding                         24,989   27,357    25,759   27,285      Effect of dilutive securities       (if conversion or exercise       assumed)        Convertible perpetual preferred         stock                              4,719    4,711     4,717    4,710        Employee share-based awards           142      373       196      385      Denominator for diluted earnings       per share                           29,850   32,441    30,672   32,380    Diluted earnings per share:      From continuing operations            $1.78    $1.56     $3.78    $3.38      From discontinued operations              -        -         -    (0.01)      Net income per share                  $1.78    $1.56     $3.78    $3.37
NOTE 4. SEGMENT INFORMATIONThe principal approach used by management to evaluate the Company's performance is by geographic region, although some components of the business are evaluated on the basis of their worldwide operations. The Company evaluates the performance of its segments based on operating income after allocated overhead expenses (excluding significant non-recurring charges or credits), plus equity in pretax earnings of unconsolidated affiliates.Operating results for the Company's reportable segments for each period presented in the consolidated statements of income were as follows:

Three Months Ended   Nine Months Ended                                          December 31,        December 31,    (in thousands of dollars)          2008       2007      2008        2007    SALES AND OTHER OPERATING REVENUES      Flue-cured and burley leaf       tobacco operations:        North America               $160,979   $133,319   $264,272   $222,004        Other regions (1)            482,538    373,670  1,570,299  1,258,781          Subtotal                   643,517    506,989  1,834,571  1,480,785    Other tobacco operations (2)      55,627     66,105    156,450    197,856    Consolidated sales and     other operating revenues       $699,144   $573,094 $1,991,021 $1,678,641    OPERATING INCOME      Flue-cured and burley leaf       tobacco operations:        North America                $23,894    $19,395    $27,218    $18,364        Other regions (1)             49,747     52,016    147,385    147,928          Subtotal                    73,641     71,411    174,603    166,292    Other tobacco operations (2)       9,030     16,202     24,983     29,283    Segment operating income          82,671     87,613    199,586    195,575    Less:      Equity in pretax earnings of       unconsolidated affiliates (3)   5,259      8,477     12,792      7,231      Restructuring costs (4)              -          -          -      3,304    Consolidated operating income    $77,412    $79,136   $186,794   $185,040    (1) Includes South America, Africa, Europe, and Asia regions, as well as        inter-region eliminations.    (2) Includes Dark Air-Cured, Special Services, and Oriental, as well as        inter-company eliminations.  Sales and other operating revenues for        this reportable segment include limited amounts for Oriental because        its financial results consist principally of equity in the pretax        earnings of an unconsolidated affiliate.    (3) Item is included in segment operating income, but not included in        consolidated operating income.    (4) Item is not included in segment operating income, but is included in         consolidated operating income.
NOTE 4. SEGMENT INFORMATIONThe principal approach used by management to evaluate the Company's performance is by geographic region, although some components of the business are evaluated on the basis of their worldwide operations. The Company evaluates the performance of its segments based on operating income after allocated overhead expenses (excluding significant non-recurring charges or credits), plus equity in pretax earnings of unconsolidated affiliates.Operating results for the Company's reportable segments for each period presented in the consolidated statements of income were as follows:

Source: PRNewsWire

Rating: 3.7/5 (3 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK